Hawaii Solar Incentives
Hawaii State & Federal Tax Credits
Hawaii state and federal solar incentives combined offer a savings of over 50% on average, off of upfront purchase prices. The island’s state tax credit is 35%, while the federal solar Investment Tax Credit (ITC) is currently 30%. There is no better time to go solar than now!
HAWAII RENEWABLE ENERGY TECHNOLOGIES INCOME TAX CREDIT (RETITC)
The Renewable Energy Technologies Income Tax Credit (RETITC) is a Hawaiʻi State tax credit that allows individuals or corporations to claim an income tax credit for up to 35 percent of the total cost for a solar PV, solar space heating, or solar thermal water heating system, subject to cap amounts ($5,000 per five kW for photovoltaic systems). If the credit earned exceeds the total amount of taxes owed by a tax payer in a single tax year, the credit may be carried forward.
FEDERAL RESIDENTIAL CLEAN ENERGY CREDIT
The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through 2032. The credit percentage rate phases down to 26 percent for property placed in service in 2033 and 22 percent for property placed in service in 2034. You may be able to take the credit if you made energy saving improvements to your home located in the United States.
The credit is nonrefundable, so the credit amount you receive can’t exceed the amount you owe in tax. You can carry forward any excess unused credit, though, and apply it to reduce the tax you owe in future years.